Stocks typically vest over 4 years in most tech companies. Wouldn't it be better to include only 1/4th of stock as part of TC when communicating here on blind and in general ? For example, a typical blind post says - Base : 100K RSU 400 K TC 500 K Wouldn't base 100k rsu 100k TC 200 k be more accurate representation of what I would earn in one year ? Of course bonus , refresher etc will change next year. Please advise what am I missing ?#tech #compensation
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What? No one does that.
May be I am misinterpreting but some of the TC in posts just are bonkers. But thank you
If it looks bonkers, it's usually the stock appreciated a ton. Mine did. Also, some people lie.
They’re all the same, but if not explicitly mentioned, assume it’s over 4 years
Cool.
Usually people share the offer with 4 years worth of RSU When talking about TC, people averages the RSU per year or based on vesting schedule each year Your understanding is correct for TC
Thank goodness. My mind was just spinning.
Lol your question sounds like "There's no way someone is getting 400k in stock per year right??" What you're saying is how people should calculate TC. Yes, for some people, that figure is 200k base, 400k RSU and 600k TC per year
What? No one calculates 100k + 400k as 500k TC.. everyone would just calculate it as 200k TC
Folks have been inconsistent. Hence the root of my confusion I
Folks get 1M+ over 4 years initial RSU package to be 500k+ TC. This is the target annual TC for a Facebook or Google manager. At senior manager, it jumps to target annual TC of almost 1M.
I haven’t seen a single post like you mentioned. Everyone knows to divide the RSUs by 4
They do divide it by 4 already. The only thing that is not consistent is whether appreciation is included. That is, do you price the stock at market value or the initial offer? I think market value is your true TC - you probably wouldn't walk away for less - but the "initial price" TC is useful to people looking at a company from the outside to see what they might get offered.
Question on adding stock, particularly ISO, to TC: do you use your strike price (the original amount granted to you) or FMV (the current price)?
I think both are useful to know and we don't distinguish it enough. Pretty sure most people do FMV since that is the "real" value to the person receiving it. But initial price TC is probably more useful to people outside the company considering what offer they might get
Yes. What you described is exactly what TC is.
Thank you.